American Electromedics Corp. Announces $6 Million Contract for Distribution of INJEX in Mexico.

Business Editors and Health/Medical Writers

AMHERST, N.H.--(BW HealthWire)--Dec. 20, 1999

AMERICAN ELECTROMEDICS CORP. (OTCBB:AMER) announced today that its wholly-owned subsidiary, Equidyne Systems, Inc. ("Equidyne"), has signed a distribution agreement for its INJEX(TM) needle-free injection system in Mexico. The new agreement provides the Mexican firm, Centro de Estudios Endocrinologicos, SA de CV ("CEESA"), with exclusive rights to distribute the INJEX(TM) System in Mexico. This agreement replaces an earlier contract between Equidyne and Mercantil Mexicana, which covered only the Mexican State of Baja California. Mexico has one of the highest per capita rates of diabetes in the world, and this distribution agreement is expected to generate revenues to Equidyne in excess of $6 million over a 24-month period beginning in the Spring of 2000.

Michael T. Pieniazek, President, stated, "The agreement was awarded to CEESA in recognition of its funding and performance of research and clinical studies in Mexico, demonstrating the safety and efficacy of the INJEX(TM) System in a variety of applications, including the administration of vaccines, local anesthetics, insulin and human growth hormone. CEESA has also developed techniques for using the INJEX(TM) System to perform the difficult injection of medications commonly used in the treatment of erectile dysfunction. Current CEESA research also includes a number of applications for plastic and cosmetic surgery."

Equidyne Systems, Inc., a wholly-owned subsidiary based in San Diego, California, and Rosch AG Medizintechnik ("Rosch AG"), based in Berlin, Germany (Additional information at: www.roeschnet.com), are focused on becoming leaders in needle-free drug delivery systems for subcutaneous and intramuscular injections. Rosch AG is responsible for the European market, while Equidyne is responsible for the U.S., Canada, South America and the Asian markets. The INJEX(TM) needle-free injector is an uncomplicated device that delivers a virtually painless injection through the skin in a fraction of a second, and eliminates needle stick and disposal problems. For medications requiring injection, we believe the INJEX(TM) System is by far the most comfortable and economical product on the market.

The statements contained in this news release that are not purely historical are forward-looking statements that may involve risks and uncertainties. The Company's actual results may differ significantly from the results contained in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the effect of losses and other factors on the Company's credit facilities, business and results of operations; the Company's limited capital resources and its ability to fulfill its existing obligations and ongoing capital needs; risks associated with excess or obsolete inventory; the potential impairment of assets; the Company's dependence on key customers and their financial viability; the impact of competition; and the Company's abilities to effectively manage growth. These and other risk factors are discussed in the Company's filings on Forms 8-K, 10-QSB and 10-KSB.